Wingstop (WING) - Get Report shares rose Wednesday after the chicken-wing restaurant chain reported stronger-than-expected second-quarter earnings amid the coronavirus pandemic and increased its dividend.
Wingstop net income more than doubled to $11.5 million, or 39 cents a share, from $4.9 million, or 17 cents, in the year-earlier period. Analysts surveyed by FactSet had forecast earnings per share of 30 cents for the latest quarter.
The Dallas company reported revenue of $66.1 million, up 36% from $48.6 million in the year-ago quarter. The FactSet analyst consensus for the latest quarter was $62.5 million.
Wingstop’s online business buoyed it through the pandemic. “We benefited from a steadfast focus on expanding our digital business and leveraging delivery to make it seamless for fans to access … wings, fries and sides," Chief Executive Charlie Morrison said in a statement.
"Despite the unprecedented circumstances, we opened 23 net new restaurants which highlights the excitement of our brand partners to grow with Wingstop and the strength of the unit-level economics.
"We ... are well positioned to continue making progress towards our vision of becoming a top-10 global restaurant brand."
Wingstop set its dividend at 14 cents a share, up 27% from 11 cents last quarter. The dividend is payable Sept. 11 to holders of record Aug. 28.
In March, Wingstop’s chief operating officer, Laurence Kruger, stepped down. His departure wasn’t the result of any disagreement, the company said in a Securities and Exchange Commission filing.